insurance

The word “insurance” means an arrangement where you pay a company regularly so it covers you financially if something bad happens. In plain terms, a financial safety net you pay into in case something goes wrong, or more loosely, any precaution.

“Insurance” is pronounced ihn-SHAW-ruhns (/ɪnˈʃʊɹ.əns/ in IPA).

Here is “insurance” used in a sentence: “They took out car insurance before their first road trip.”

“Insurance” is a noun.

“Insurance” is a very common word in modern English, usually learned at around the B1 level.

“Insurance” has 2 distinct senses listed in this dictionary. The most common is: an arrangement where you pay a company regularly so it covers you financially if something bad happens.

Insurance covers many risks. Common types include health, life, car, home, and travel insurance, along with business cover. Each protects against a particular kind of loss — illness, death, accidents, damage, or theft — in exchange for regular payments known as premiums.

In everyday use they overlap, but traditionally 'insurance' covers events that might happen, like a fire or accident, while 'assurance' covers something certain to happen eventually, such as death — hence 'life assurance'. The distinction is mainly British, and many people now use 'insurance' for both.

You pay a company a regular amount, called a premium. In return, it promises to pay out if a covered event happens — an accident, illness, or damage. Because many customers pay in but only some claim, the pooled money covers those who suffer a loss, spreading the risk across everyone.

A premium is the amount you pay for insurance, usually monthly or yearly — the price of being covered. The insurer sets it based on how likely you are to claim and how much a claim might cost, so riskier situations generally mean higher premiums.